Release Date: May 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Blue Dart Express Ltd (BOM:526612, Financial) reported a revenue from operations of INR57,202 million and a profit after tax of INR2,446 million for the year ended March 31, 2025.
- The company was recognized for excellence in customer service, sustainability, compliance, and brand loyalty, and was awarded for its customer-centric approach and operational excellence.
- Significant investments made in the previous year have been well operationalized, contributing to positive growth in both revenue and volumes.
- The company has maintained a strong position in pricing, successfully implementing price increases with both large and small players.
- Blue Dart Express Ltd (BOM:526612) has achieved optimal utilization levels for its freighters, indicating efficient use of resources.
Negative Points
- Margins have decreased in the fourth quarter compared to the third quarter, attributed to the incremental costs of new aircraft and lower business days.
- The EBITDA margin has declined from 10.5% in the previous year's fourth quarter to 8.3% in the current quarter.
- The company's return on capital employed (ROCE) is at a decade low, excluding the COVID-19 period, due to investments in owned assets.
- There is a noted contraction in gross margins from 43.2% to 41.4% year-over-year, despite price increases.
- The volume growth has not fully translated into revenue growth, indicating challenges in price realization across the board.
Q & A Highlights
Q: Can you provide the volume data for this quarter?
A: We had 9,191.94 million shipments for the quarter with a weight of 331,101 tons. - Interim CFO, Sagar Patel
Q: Why have margins decreased this quarter compared to the third quarter?
A: The third quarter typically sees higher volumes due to the festive season, which tapers off in the first quarter. Additionally, the operationalization of new aircraft has increased costs, impacting margins. - Interim CFO, Sagar Patel
Q: What is the outlook for growth and EBITDA margins, and why were margins down to 8.3% from 10.5% last year?
A: Investments made last year have increased costs, but as customers recognize improved transit times, pricing will develop, and margins are expected to improve. - Interim CFO, Sagar Patel
Q: How much CapEx will be undertaken, and how will the new Guwahati hub contribute to growth?
A: CapEx will focus on replacement, upgrading, and expanding capacities. The Guwahati hub will help utilize aircraft effectively, with significant volume improvements from the Northeast. - Interim CFO, Sagar Patel
Q: Are the new freighters operating at optimal utilization, and is there room for growth?
A: The freighters have reached optimal utilization levels, similar to the earlier fleet, with utilization between 85% to 90%. - Interim CFO, Sagar Patel
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
